As I understand it, there is $18 000 to split between 4 people. So each should get $4500. This is achieved if the three bene gives $1500 to the fourth one.
Hi. First time poster. Nice to be here.
I was the personal representative for my father's estate and had to divide the final proceeds of the bank account equally, four ways. The estate is now closed but one of the beneficiaries just alerted me that they didn't receive a $6000 cash distribution a few years ago that all of the other three received. Do each of the other three bene's who received the $6000 previously now owe the fourth bene who didn't receive the $6000, two thousand dollars or just fifteen hundred dollars?
Granted, this is simple math but also rather confusing given the situation. The three bene's have decided it's morally correct to pay but aren't sure of the amount.
I think the fourth bene is due $2000 from each of the other three bene's because the $6000 should not have been included in the final distribution (it should have already been paid); the fourth should not owe herself $1500. However, another of the three bene's thinks only $1500 is owed (from each of the other three) since the fourth bene already received $1500 in the final distribution.
Thanks.
Klaatu:
First the math: if $6K was distributed to each of 3 beneficiaries then that's a total of $18000. That $1800 can be split 4 ways if each person nets $18000/4 = $4500. Three have already eceived $6K, so they should each send $1500 to the 4th. That way each persion ends up with $4500. Note that if the three sent $2k each then they would end up with only $6K-$2 = $4K, whereas the 4th would end up with 3 x $2K = $6K, which isn't equitable.
Now as for how this happened - if this is a simple math error from several years ago that as personal representative you missed - OK. But if the problem is that $6K went missing you really need to investigate what happened. As the personal representative you have a responsibility to ensure that the estate's assets are protected and distributed in accordance with the decedant's wishes.
Never occurred to me to simply split what was received rather than what was supposed to have been received:
3
6,000 ×
--------------------------
18,000 =
4 ÷
--------------------------
4,500 =
3 ÷
--------------------------
1,500 =
Thank you both.
What really happened is that the fourth bene received the $6000 when all of the others did but returned it shortly thereafter for personal reasons. Now that the dust in her life has settled, she wants it back.
I was the personal representative
for my father's estate and had to divide the final proceeds of the bank account equally